THERE are fresh signs of a recovery in the air travel industry following September 11.

A survey showed global flight numbers are now down just four per cent, compared with a 10 per cent decline in the aftermath of the terror attacks.

At Manchester, many scheduled services are holding at levels seen before the atrocities.

Passenger numbers for July were down 5.5 per cent on the same month last year, from 2.18m to 2.06m. But this was a significant improvement on the airport's performance in some previous months, when the number of travellers slumped by almost nine per cent in comparison with 2001.

July's figures were boosted by people flying in for the Commonwealth Games, and were in line with airport bosses' forecasts.

The survey published today was compiled by Official Airline Guide, which collects the schedules of more than 850 airlines worldwide.

OAG's marketing director Lynne Fraser said: "It is encouraging to see that air traffic is increasing again and in some cases reaching pre-September 11 levels."

Last week Michael Leary, the boss of Irish budget operator Ryanair, said the fallout from the attacks had created huge growth opportunities. Ryanair reported a 58 per cent surge in annual pre-tax profits.

Low-cost rival easyJet showed its passenger numbers were up 61.7 per cent in July compared with a year ago.

Growth

Ms Fraser said the competition in the low-cost sector was the likely reason for growth in the number of UK domestic flights as a whole in the past year.

Flights to and from the US and Heathrow are now at the levels seen 12 months ago, compared with an eight per cent slump two months after the attacks.

OAG added the number of flights to and from Western Europe and the US is now 13 per cent lower - compared with an 18 per cent drop two months after the terrorist attacks. US domestic traffic is currently down seven per cent.

BAA, whose airports include Heathrow, Gatwick and Stansted, said cheap tickets had boosted demand for travel within the UK during July. Domestic traffic was up 10 per cent, with Stansted, Glasgow and Edinburgh in particular benefiting from the trend.

Overall, 12.9 million passengers passed through BAA's airports in July, up 0.4 per cent on last year and an improvement on the 11.6 million recorded in June 2002.

On the downside, US Airways, which flies direct to Manchester from Philadelphia, said it had filed for bankruptcy protection. Services are not affected.